Following a year of regulatory reviews, approvals and legislative action, Duke Energy Progress and the North Carolina Eastern Municipal Power Agency completed the about $1.25 billion sale of NCEMPA's generating assets to Duke Energy Progress.
Prior to the sale, NCEMPA maintained partial ownership interest in several Duke Energy Progress plants, including Brunswick Nuclear Plant Units 1 and 2 (Brunswick County), Mayo Plant (Person County), Roxboro Plant Unit 4 (Person County) and the Harris Nuclear Plant (Wake County).
NCEMPA's ownership interest in these plants represented about 700 MW of generating capacity.
The $1.25 billion purchase price includes NCEMPA's ownership interest in the plants, fuel inventories and spare parts as well as certain adjustments set forth in the asset purchase agreement.
NCEMPA members' distribution assets are not part of the agreement, and will continue to be owned and maintained by those members.
Under the terms of the agreement, Duke Energy Progress and NCEMPA have entered into a 30-year wholesale power supply agreement to continue meeting the needs of NCEMPA customers previously served by the agency's interest in Duke Energy Progress' plants. Power sales under this supply agreement commenced immediately upon closing.
Duke Energy Progress and NCEMPA first announced the agreement on July 28, 2014. Completion of the transaction required regulatory action by the Federal Energy Regulatory Commission, Nuclear Regulatory Commission and N.C. Utilities Commission.
On April 2, 2015, legislation was signed that provided a means for Duke Energy Progress to finance the full cost of the asset acquisition. NCEMPA received legislative approval to refinance its remaining debt obligations after the completion of this transaction.
The agreement also required the approval of NCEMPA's 32 member utilities.
NCEMPA consists of 32 cities and towns in eastern North Carolina, including some of the largest cities in the region. NCEMPA participants own and operate their electric systems and serve nearly 270,000 retail customers. NCEMPA was formed in 1978 and is managed by ElectriCities of North Carolina, headquartered in Raleigh.